Privacy & Cybersecurity Law Report Publishes Akin Gump Article on SEC Warning over Client Privacy and Data Security
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Privacy & Cybersecurity Law Report has published the article “SEC Warns Registered Firms about Client Privacy and Data Security,” written by Akin Gump partners Natasha Kohne and Michelle Reed, co-leaders of the firm’s cybersecurity, privacy and data protection practice, and litigation partner Peter Altman; litigation counsel Diana Schaffner; and former litigation associate Nicole Greenstein.
The article examines a risk alert from the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) that warns investment advisors and broker-dealers “to review their policies and procedures regarding Regulation S-P, a privacy rule designed to safeguard customer records and information.” The risk alert, the authors write, follows a recent enforcement action involving Reg. S-P that resulted in “a $1 million fine for failed policies and procedures that resulted in a breach.”
The authors discuss some common compliance issues discovered by OCIE and suggest that firms ensure they are providing customers “with initial and annual privacy notices, as well as opt-out notices, that actually reflect their policies and procedures.” They also write that those firms should have written policies and procedures in place “related to administrative, technical and physical safeguards” and that those policies should be able to protect customer records and information.
To read the complete article, which originated as an Akin Gump client alert, please click here.
